The issue of mis-sold pension has become quite big in the UK. Individuals keep getting bad suggestions from financial experts, and this makes them put their money in bad investments. Still, many are yet to know whether they can make mis-sold SIPP pension claims and the chances that they will succeed. It is advisable to get claims advice once you suspect that you had a mis-sold a pension transfer.
Is It Possible to Make a Mis-sold Pension Claim?
While it is possible to make a mis-sold SIPP pension claim, the process is usually complicated with many factors come into play. The most important thing is that you need to make a claim within six years following the wrongly defined benefit pension transfer. Failure to do this will make it even harder to get compensated by the government. This principle applies to all types of pensions, including denied benefit pension.
How to Make Mis-sold Pension Claim
The amount of effort you will have to put into the process depends on how the instance occurred. You might be urged to get claims advice and then speak to a Pension Advisory Service, scheme provider, the Pension Protection Fund, the FSCS, or the ombudsman. In some instances, you will have to contact all of them for the claim to go through.
You can choose to handle the entire process yourself. But you should be ready to do a lot of work if you decide to go with this option. You can start by finding your scheme provider. In case your defined benefit pension was transferred out to a SIPP pension, it is advisable to make contact with them.
If the mis-sold pension resulted from poor advice from IFA, you could take it to them. Note that at this stage, it may be hard to find the specific person you need to talk to. This is why it is best to try them all. This can help you confirm that they are the ones that advised you wrongly, making you make a bad investment. It is clear that you will spend a lot of time contacting individuals and organisations until you get the right one.
Making a Claim
After you have traced the actual source of the bad advice, you can go ahead and make a claim. You must convince them that your pension was mis-sold and that you are looking to be compensated. If you manage to track down the company, communicate with them and they admit their mistake, then you are all set to receive your money. You will receive your compensation at the agreed time.
What if They Decline the Claim?
In some instances, the company will admit to the fact that they mis-advised you but still refuse to compensate you. They might also give you an offer that you feel is too low compared to what you have lost.
If this happens, you need to start working on getting professional assistance so that you don’t lose your money. Though the chances are that they might not offer direct help, they usually provide impartial service free of charge and also provide you with clear steps.
If the firm you are trying to track no longer exists, you will have to skip all the steps and go directly to FSCS. This body normally offers compensations if they follow up and learn that you lost money due to misleading financial advice, mismanagement of investment, or fraud. Again, you will not have to spend money to get these services, but you will have to file a lot of documentation to prove your case.
